JPMorgan moved off the sidelines on Teva Pharmaceuticals , citing its cost-cutting efforts. Analyst Chris Schott upgraded U.S.-listed shares of the Israeli pharmaceutical company to overweight from neutral. Schott hiked his price target by $2 to $23, which suggests 35.9% upside from last week’s closing level. Schott’s call comes after the company last week announced a plan for around $700 million in net savings. With that, the company should be able to see an operating margin of 30% in 2027. “Teva’s margin trajectory in 2026/27 had been our primary concern on the story,” Schott wrote to clients in a Monday note. “However, TEVA’s $700mm cost-cut program … bridges much of the gap from current results to the company’s 30% operating margin target by 2027. And looking beyond this cost program, we see TEVA growth improving significantly as we look out to 2027 and beyond.” The announcement comes as Teva shifts to the “acceleration” portion of its “pivot to growth” strategy that was announced in 2023. On top of the efficiency work, Schott called the company’s portfolio “well-positioned” to see growth over time. He specifically noted that the Austedo tablets have surpassed expectations, while olanzapine can become a $1 billion to $2 billion product following its launch slated for next year. With the upgrade, Schott joined the majority of Wall Street analysts who have buy-equivalent ratings, per LSEG. Yet shares tumbled around 5% in Monday’s premarket trading after President Donald Trump announced an executive order that would slash drug costs. The stock has already dropped more than 23% in 2025, reversing course after soaring more than 110% in the prior year. TEVA 1Y mountain TEVA, 1-year
